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Top 10 Lenders Offering £300,000 Development Finance for UK Property Developers in 2026
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Top 10 Development Finance Lenders for £300,000 Compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Mid-sized residential development projects | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Inhale Capital | Cost-sensitive developers seeking low monthly rates | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 3 | Brightstar | Developers who prefer annual-rate funding structures | From £50,000 | interest 5% to 12% annually |
| 4 | Momenta Finance | Established developers bridging a site acquisition | £50,000 to £2,000,000 | interest 8% to 24% annually |
| 5 | Nucleus Commercial Finance | Newer developers needing flexible bridging between projects | £3,000 to £2,000,000 | mixed 1.15% to 17.5% monthly |
| 6 | Shire Leasing | Smaller-scale property conversions and light refurbishment | £5,000 to £750,000 | interest 4% to 11% monthly |
| 7 | Shireassetfinance | Refurbishment projects needing fast completion funding | £5,000 to £750,000 | interest 4.5% to 12% monthly |
| 8 | United Trust Bank | Larger developers requiring bank-backed bridging | £100,000 to £35,000,000 | interest 5% to 12.5% annually |
| 9 | Barclays | Included for comparison to specialist development lenders | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 10 | MT Finance | Experienced developers seeking competitive bridging rates | £50,000 to £10,000,000 | interest 0.89% to 1.05% monthly |
Development finance is a short-term funding facility that releases capital in stages as a property project progresses, rather than as a single lump sum. For UK property developers, this structure matches the cashflow demands of ground-up construction, major refurbishment, and commercial-to-residential conversions. Funds are drawn down against completed work stages, helping developers manage contractor payments and material costs without tying up all their working capital at once. A £300,000 facility typically supports small to mid-sized residential or mixed-use projects.
Comparing development finance lenders goes beyond headline interest rates. The loan-to-cost ratio, typically 65% to 75% of GDV, determines how much capital you must contribute upfront. The drawdown schedule and any associated admin fees directly affect project cashflow. Some lenders charge interest only on drawn funds, while others apply it to the full facility from day one. Developer experience, planning permission status, and the strength of your exit strategy will all influence the terms a lender offers.
Important note:
Funding Agent
Published loan rangeFrom £10,000 to up to £1,000,000
Rate typeInterest from 6.8% annually
Why it is included:It is included because many business owners need to compare several finance routes before choosing where to apply.
Funding Agent can help businesses compare suitable options across a lender panel, especially when eligibility depends on turnover, sector, trading history, credit strength and available documents.
Best use case: When the borrower wants to avoid applying to one lender at a time.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Why it stands out
- Useful when a business wants to compare lender fit rather than guess which lender to apply to first.
- Can help position the application around the funding purpose, trading profile and available documents.
- Works well as a conversion route for readers who are unsure whether a direct lender will approve a larger unsecured facility.
Need to know
- Funding Agent is a broker, not a lender.
- The lender, not Funding Agent, sets the final rate, term, fees and approval decision.
- The best match may be unsecured, secured, revolving credit, invoice finance or another product depending on the case.
Expert take
Funding Agent is a useful honourable mention for business owners who want to compare lender options before submitting a full application. A larger unsecured loan is not always approved by the first lender a business finds, so understanding lender fit early can reduce wasted time and avoid unnecessary declines.
One Stop Business Finance
Published loan range£100,000 to £3,000,000
Rate typeinterest 1.6% to 3% monthly
Overview: A development facility that lets you draw, repay and reuse funds as your project moves through each phase. One Stop Business Finance lends from £100,000 to £3,000,000, with monthly interest rates starting at 1.6%. Funding takes around five days. The trade-off is that revolving limits can be reviewed or reduced during the term.
Best next step: Check eligibility for staged funding
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Revolving credit for phased projects
- Facilities up to £3 million
- Rates from 1.6% monthly
Need to know
- Security and personal guarantee likely
- Limits can be reviewed mid-term
- Legal and valuation costs apply
Expert take
A flexible lender that works well for developers managing projects in stages. The revolving structure suits ground-up builds and refurbishments where drawdown timing affects overall cost. Rates are competitive for the development finance market.
Source:https://www.osbf.co.uk/
Inhale Capital
Published loan range£0 to £2,000,000
Rate typeinterest 1.05% to 1.3% monthly
Overview: When a site needs to be secured before a competitor moves, Inhale Capital can fund in as little as 24 hours. The lender offers property-backed facilities up to £2,000,000, with monthly rates between 1.05% and 1.3%. This short-term secured model suits developers who have a clear exit strategy and can move quickly through legals.
Best next step: Fast funding for time-sensitive site purchases
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding within 24 hours
- Rates from 1.05% monthly
- Loans up to £2 million
Need to know
- Property security required
- Exit strategy scrutinised closely
- Short-term facility only
Expert take
A speed-focused bridging lender that prioritises quick decisions. For a £300,000 development project, the 24-hour turnaround helps developers act fast on land or property purchases. The low starting rate is attractive, though full underwriting still applies.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: Annual interest from 5% makes Brightstar a cost-conscious option for developers weighing up total project finance charges. Lending starts at £50,000 with no published upper limit, and funding can complete within 24 hours. The caveat is that annual-rate products typically suit shorter-term projects where the overall interest burden stays manageable.
Best next step: Compare annual rates from 5%
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from just 5%
- Funding within 24 hours
- Loans from £50,000 upwards
Need to know
- Property-backed security needed
- Shorter terms keep costs down
- Valuation fees apply
Expert take
A property-backed lender with pricing structured annually rather than monthly, making cost comparison easier for developers. The 5% starting rate is competitive. Best suited to projects with a well-defined exit within 6 to 12 months.
Momenta Finance
Published loan range£50,000 to £2,000,000
Rate typeinterest 8% to 24% annually
Overview: Momenta Finance works with established developers who can demonstrate a track record and offer property as security. Its bridging loans run from £50,000 to £2,000,000, with annual rates between 8% and 24%. Funding typically completes within 48 hours, giving experienced developers a reliable route to securing a £300,000 facility.
Best next step: Suited to experienced developers
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans from £50,000 to £2m
- Funding in 48 hours
- Term loan structure available
Need to know
- Trading history expected
- Personal guarantee may apply
- Legal and valuation costs due
Expert take
A secured lender that favours established SMEs with strong track records. For property developers, the bridging product can fund acquisitions or light refurbishment. Underwriting looks closely at affordability and exit plans rather than just asset value.
Nucleus Commercial Finance
Published loan range£3,000 to £2,000,000
Rate typemixed 1.15% to 17.5% monthly
Overview: With facilities spanning £3,000 to £2,000,000, Nucleus Commercial Finance covers small top-ups and full development projects alike. Monthly rates range from 1.15% to 17.5% depending on the deal structure, and funding can be arranged within 24 hours. The mixed-rate model means pricing reflects the project risk rather than a flat tariff.
Best next step: Flexible sizing for mixed-use projects
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Wide range from £3k to £2m
- Funding within 24 hours
- Mixed-rate pricing model
Need to know
- Strong trading history expected
- Security and PG likely required
- Higher rates for riskier deals
Expert take
A versatile lender whose broad loan range means the same underwriter can handle both site acquisition and later-stage top-ups. The mixed-rate structure rewards lower-risk projects with cheaper pricing. Well suited to developers with a solid credit profile.
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11% monthly
Overview: Shire Leasing offers a dedicated property development finance product alongside its asset finance range, making it a dual-purpose option for developers who also need equipment funding. Loan sizes run from £5,000 to £750,000, with monthly rates between 4% and 11%. Funding decisions come through in 24 hours.
Best next step: Development and equipment finance combined
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Dedicated development product
- Decision within 24 hours
- Loans from £5k to £750k
Need to know
- Rates start from 4% monthly
- Security will be required
- Trading history may be checked
Expert take
A lender with a specific property development product, not just a bridging loan dressed as development finance. The £5,000 to £750,000 range covers smaller builds and refurbishments. Monthly rates begin at 4%, which sits at the higher end of the market.
Shireassetfinance
Published loan range£5,000 to £750,000
Rate typeinterest 4.5% to 12% monthly
Overview: A four-hour funding decision puts Shireassetfinance among the fastest responders for development finance. The lender provides property development loans from £5,000 to £750,000, with monthly rates ranging from 4.5% to 12%. Developers needing to move on a same-day basis will find the speed hard to match elsewhere.
Best next step: Same-day decisions in four hours
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Decision in just 4 hours
- Property development product
- Loans up to £750,000
Need to know
- Monthly rates from 4.5%
- Security-backed lending only
- Higher pricing for speed
Expert take
A rapid-response lender built for developers who cannot wait days for an answer. The four-hour turnaround is among the quickest available for development finance. Rates reflect the speed premium, so this works best when timing outweighs cost in the deal calculus.
United Trust Bank
Published loan range£100,000 to £35,000,000
Rate typeinterest 5% to 12.5% annually
Overview: United Trust Bank writes bridging facilities from £100,000 up to £35,000,000, giving developers room to scale without switching lenders. Annual interest runs between 5% and 12.5%, and funding concludes within 48 hours. The bank's bridging product doubles as development finance for conversions and ground-up builds.
Best next step: Scale-ready lending up to £35 million
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Facilities up to £35 million
- Annual rates from 5%
- Funding within 48 hours
Need to know
- Bank underwriting applies
- Asset or property security needed
- Not a dedicated development loan
Expert take
A bank-backed lender with the balance sheet to support projects from small conversions through to major developments. The bridging product works as de facto development finance. Annual-rate pricing keeps cost comparisons straightforward for developers.
Source:https://www.utbank.co.uk/
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: Barclays brings mainstream banking stability to development lending, with facilities spanning £1,000 to £25,000,000 and annual rates from 8.5% to 14.9%. For developers who value a familiar high-street relationship, the bank can fund within 24 hours on straightforward cases. Underwriting is thorough and may take longer for complex projects.
Best next step: High-street banking for developers
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Established high-street lender
- Facilities up to £25 million
- Broad product range available
Need to know
- Stricter underwriting expected
- Trading history will be reviewed
- Valuation and legal costs apply
Expert take
A mainstream bank that suits developers with clean credit histories and detailed project plans. Barclays' secured lending arm handles development projects at this level. Approval may take longer than with specialists, but the brand strength and product range add long-term value.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: Monthly rates starting at 0.89% make MT Finance one of the more affordable short-term lenders for development projects. The lender advances £50,000 to £10,000,000, with funding decisions within 24 hours. Developers pursuing light-to-medium refurbishments or conversions will find the pricing particularly attractive relative to peers.
Best next step: Low monthly rates from 0.89%
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Rates from 0.89% monthly
- Loans up to £10 million
- Decision within 24 hours
Need to know
- Property security required
- Exit strategy is key
- Valuation costs apply
Expert take
A competitively priced short-term lender where monthly rates dip below 1%, which is rare in the development finance market. The low rate reduces carrying costs significantly. Best suited to developers with a clean exit and strong asset backing.
Source:https://www.mt-finance.com/
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How £300,000 development finance works for UK property developers
Development finance at the £300,000 level is typically released in stages, not as a single lump sum. Lenders disburse funds against completed work phases, which controls their risk and keeps your interest costs down. You only pay interest on the amount drawn, not the full facility.
Most facilities on this list run between 3 and 18 months. One Stop Business Finance and Inhale Capital both cap terms at 18 months, while MT Finance offers facilities from 1 month up to 2 years. This gives developers enough runway to complete works and sell or refinance.
Lenders expect a clear exit strategy before approving a £300,000 facility. A planned sale of the completed property or a refinance onto a longer-term commercial mortgage is usually required. Without a credible exit, even well-planned projects can struggle to secure funding.
What lenders assess before approving a £300,000 development loan
For a £300,000 facility, lenders look closely at loan-to-cost and loan-to-gross-development-value ratios. Most on this list cap lending between 70% and 75% of site value or GDV. One Stop Business Finance and Inhale Capital both publish a maximum LTV of 75%, while Brightstar can go up to 100% in certain cases.
Planning permission is almost always required. Full detailed consent strengthens an application, though some lenders may accept outline permission where the project is straightforward. Developer experience also carries weight: a track record of completed projects helps secure more competitive rates.
Most lenders on this list require a personal guarantee from directors, giving recourse beyond the property itself. First-time developers can still access £300,000 development finance, but may face tighter LTV caps or higher rates until they have built a history of successful exits.
Project types that suit a £300,000 development finance facility
A £300,000 facility covers a useful range of property projects. Ground-up construction of one or two residential units is a common fit, where funds cover land costs and build expenses released in stages against an agreed schedule.
Major renovations and extensions also work well at this level. Turning a dated property into a higher-value home often requires £150,000 to £300,000 in works, and development finance bridges the gap between purchase and eventual sale.
Property conversions are another frequent use case. Converting a commercial unit into residential flats or splitting a large house into multiple dwellings are projects well served at this amount. Lenders such as Shire Leasing and Shireassetfinance offer facilities from £5,000 up to £750,000, making them flexible for smaller conversions alongside larger schemes. Light refurbishment with a quick turnaround of three to six months can also work, particularly where the exit is a fast sale.
Comparing rates on £300,000 development finance across UK lenders
Development finance rates vary considerably. Monthly rates on this list range from 0.89% at MT Finance to 3% at One Stop Business Finance, while annual rates sit between 5% at Brightstar and 12.5% at United Trust Bank.
| Lender | Rate type | Typical rate range |
|---|---|---|
| MT Finance | Monthly | 0.89% to 1.05% |
| Inhale Capital | Monthly | 1.05% to 1.3% |
| One Stop Business Finance | Monthly | 1.6% to 3% |
| Brightstar | Annual | 5% to 12% |
Monthly rates typically apply to shorter-term facilities, while annual rates are more common on longer-term arrangements. Always check whether arrangement fees, exit fees, and monitoring costs sit outside the quoted rate, as these can affect the total cost of a £300,000 facility significantly.
